Household items that will be more expensive from July 18
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, had trimmed the exemption list last month and imposed a tax on various goods and services. The council removed duty inversion for goods, where the taxes on inputs were higher than those on the output, based on an interim report of the Group of Ministers on rate rationalisation.
With the Goods and Services Tax Council's decision coming into force, People will have to pay 5 per cent GST on pre-packed, labelled food products like flour, paneer and curd. Besides, maps and charts, including atlases and hotel rooms with tariffs of up to Rs 1,000 per day, will attract a 12 per cent GST.
On tetra packs and fees charged by banks for issuing cheques (loose or in book form) will come with 18 per cent GST.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, had trimmed the exemption list last month and imposed a tax on various goods and services.
The council removed duty inversion for goods, where the taxes on inputs were higher than those on the output, based on an interim report of the Group of Ministers on rate rationalisation.
To correct the inverted duty anomaly, tax rates have been revised from 12 per cent to 18 per cent on products such as knives with cutting blades, paper knives and pencil sharpeners; printing, writing or drawing ink; drawing and marking out instruments and LED lamps.
Solar water heaters will also attract 12 per cent GST compared to 5 per cent earlier.
Services like work contracts for railways, metro, roads, bridges, crematoriums and effluent treatment plants will also go up from 12 per cent to 18 per cent.
Taxes will be cut on ostomy appliances and on the transport of goods and passengers by ropeways have been cut from 12 per cent to 5 per cent.
Also lowered in the cost of renting a truck or goods carriage where the cost of fuel is included. This will now attract a lower 12 per cent rate.
GST exemption on the transport of passengers by air to and from northeastern states and Bagdogra will be restricted to economy class only.
Services rendered by regulators such as RBI, IRDA and SEBI will be taxed at 18 per cent and so will be renting of a residential dwelling to business entities.
Bio-medical waste treatment facilities shall attract 12 per cent GST, while non-ICU hospital rooms exceeding Rs 5,000/day will be levied 5 per cent GST, without the input tax credit, to the extent of the amount charged for the room.
Besides, individuals will only be able to claim GST exemption for training or coaching in recreational activities relating to arts, culture, or sports.
Also, electric vehicles, whether or not fitted with a battery pack, would be eligible for the concessional GST rate of 5 per cent from July 18.
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